Introduction

The successive administrations of the Nigerian government have promoted and campaigned for foreign investment in the Nigerian economy. As such, a prospective investor must be assured of the existence of a supportive legal and regulatory environment that will safeguard his investment capital and ensure the unrestricted retention and repatriation of his profit.

In furtherance of this, policies have been put in place to guarantee and ensure that investors can easily repatriate the capital, dividends, and profits made from their foreign direct or portfolio investments in Nigeria. This is done by obtaining a Certificate of Capital Importation (CCI) from the Central Bank of Nigeria through its accredited agents.

What is a Certificate of Capital Importation (CCI)?

A certificate of capital importation is a document issued by an accredited agent of the Central Bank of Nigeria in acknowledgement of the capital imported into Nigeria by an investor for business purposes. This capital may take the form of tools, machinery, raw materials, loans, or cash. The agents are usually commercial banks operating in Nigeria.

To further ease the process, the central bank of Nigeria introduced the electronic Certificate of Capital Importation (e-CCI) in 2007. The e-CCI has the same effect as the paper CCI, with the added benefit of being electronically tracked, managed, and issued. The CBN administers the e-CCI via a platform referred to as the Electronic Certificate of Capital Importation System (e-CCIS), where the e-certificate can be viewed or printed by the applicant.

 

Procedure and Requirement to Obtain CCI

A Certificate of Capital Importation is obtained by making an application to the accredited bank, accompanied by the prescribed document. Upon being satisfied, the certificate will be processed and issued within 24 hours. It is advisable to apply for the certificate before the arrival of the capital.

The following are the requirements:

(a) Where the investment is in the form of an inflow of funds:

1. Authenticated SWIFT message advising payment.
2. A Board resolution of the local beneficiary authorising the investment;

• Purpose of capital importation (e.g., equity, portfolio, loan).
• Evidence of incorporation, where applicable.

(b) For equity and loans:

1. Letter from the customer requesting CCI.
2. A Board resolution from the Nigerian company authorizing the investment

• A copy of the Nigerian company’s certificate of incorporation
• Name and address of the foreign investor (to be provided by the Nigerian Company).
• Registration number and date of registration of investors
• Nature of Business of Investor.
• The sector of Operation of the beneficiary.
• SWIFT telex copy stating the amount and purpose of inflow
• Offer letter by the Investor and accepted by the beneficiary.
• Loan agreement stating the repayment schedule (tenor and interest rate)

(c) For the importation of machines & equipment as an equity investment:

1. Letter from a customer requesting CCI
2. A Board Resolution from the Nigerian Company authorizing the investment.
3. A copy of the Nigerian Company’s certificate of incorporation.
4. SWIFT telex copy stating the amount and the purpose of the inflow.
5. Name and address of the foreign investor (to be provided by the Nigerian company).

• Nature of Business of Investor.
• The sector of operation of the beneficiary
• Offer letter by the investor and acceptance by the beneficiary.
• Loan agreement stating the repayment schedule (tenor and interest rate).

Benefits of CCI

Obtaining CCI provides some benefits to the investor, amongst which are:

1. The right to repatriate capital, dividends, and profits at the official foreign exchange market rates in a freely convertible currency, subject to payment and deductions of all applicable taxes. With this, investors would not be affected by any currency devaluation that may happen in the country.
2. The right to operate a domiciliary account with any authorised dealer for investment purposes.
3. The right to invest in the securities of Nigerian companies.
4. The right to operate a non-resident Naira account.

 

Conclusion.

As a country welcomes foreign investors, ensuring that their funds can be easily imported and repatriated is essential, this is achieved in Nigeria under a well-designed framework as discussed above. It goes without saying that obtaining the Certificate of Capital Importation is a critical step for a foreign investor to take in order to enjoy the aforementioned advantages. With the introduction of the c-CCI, the process is also fast, efficient, and cost-effective. The process is also fast, efficient and affordable, especially with the introduction of e-CCI. Foreign investors are thus encouraged to make the most of this opportunity.